Castrol India Profit Plummets Amidst Cost Surge

Castrol India reported a substantial 49.3% decrease in net profit for the third quarter, settling at ₹176.4 crore. This downturn was accompanied by a 7.3% reduction in revenue, which fell to ₹1,734.7 crore compared to the previous quarter.

The primary factors impacting profitability were escalating raw material costs and adverse currency fluctuations, leading to a contraction in EBITDA margins from 26.4% to 15.1%. The company noted that pricing adjustments implemented earlier in the year provided some buffer against these pressures.

Despite the challenging economic climate, Castrol India continued its strategic expansion, increasing its national distribution footprint to around 1.67 lakh outlets. This includes a significant focus on rural markets, with 46,000 rural outlets now part of its network. The company also bolstered its service ecosystem, reaching over 870 service centers and numerous workshops across the country.